Despite inflation, family benefits increase by only 1.8% this April 1

by time news

It’s a coincidence of the calendar that hurts things. This Thursday morning, the National Institute of Statistics and Economic Studies (Insee) announced that inflation accelerated further in March, reaching 4.5% on an annual basis. A record for more than thirty-six years and the 4.7% recorded in December 1985. At the same time, the National Family Allowance Fund (Cnaf) formalized in a press release an increase in family and social benefits of… 1.8% April 1st only!

And this is not a joke. For recipients of the activity bonus, the RSA, the disabled adult allowance, family allowances or even the childcare supplement — 13.6 million people on the Cnaf side and 440,000 families on the Agricultural Social Mutuality side —, this low annual indexation confirms a reduction in purchasing power. “The revaluation is insufficient given the economic context that we know with the notorious price increases”, underlines Marie-Andrée Blanc, president of the National Union of Family Associations (Unaf). Especially since in 2019, 2020 and 2021, indexation had not exceeded 0.3% annually.

However, this 1.8% increase decided for 2022 is the result of a calculation method engraved in the Social Security Code. Article L161-25 thus stipulates that the annual revaluation of the amounts of the benefits is made “on the basis of a coefficient equal to the evolution of the annual average of consumer prices, excluding tobacco, calculated on the last twelve indices of these prices published by INSEE the penultimate month preceding the date of revaluation of the services concerned. However, inflation was only 1% on annual average in March 2021 to peak at 3.6% in February. A method of calculation that tends to smooth the scope of high inflation.

“An additional gesture as soon as possible”

At Unaf, we agree that other methods would undoubtedly make it possible, in the future, to better reflect the real evolution of prices. “But today, there is an emergency, because all families are impacted, Marie-Andrée Blanc is alarmed. We want an additional gesture as soon as possible, so that the increase is 5% in total. Indexation needs to stick more closely to inflation. Contacted on this subject, the Ministry of Health and Solidarity had not yet replied to us.

However, some revaluation calculation methods correspond more to reality. The minimum wage will thus experience a new automatic adjustment on May 1, between 2.4 and 2.6%, the Ministry of Labor said on Thursday. And this after the increase of 0.9%, automatic which occurred on January 1 and another revaluation of 2.2% on October 1, 2021. In seven months, the gross monthly minimum wage will thus have increased by some 90 euros. Far, far from the meager increases in family benefits.

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